NPP Sinks its Bloody Teeth into Ghana Gas Industry Again

by | Oct 27, 2016 | Local News, Politics | 0 comments

The Opposition New Patriotic Party has targeted the Ghana Gas Industry as its latest spot for its vile propaganda as it seeks the mandate of the people in the December elections.

In a hurriedly organized press conference today, the NPP disclosed what it terms a dangerous agreement the government is seeking to secure with China.

NPP’s Policy advisor Mr. Boakye Agyarko said, “the Mahama Cabinet has recently given approval to a proposal which they hope will entice the China Development Bank to re-activate the remaining $2 billion of the $3 billion loan which the Chinese discontinued after disbursing $1 billion of it to Ghana.”

In the original Master Facility Agreement, he said, President Mahama committed Ghana to supplying, as collateral security, 13,000 barrels per day of crude oil up to 2027 to service the CDB facility.

“The Chinese eventually considered this as insufficient because of the slump in oil prices, refusing to release the remaining tranches,” he said.

Mr. BoakyeAgyarko said, in the new offer to CDB, the Mahama government is proposing to export to the Chinese, all the Natural Gas Liquids (NGLs) to be processed by the Ghana Gas processing plant at Atuabo from 2018, estimated at the value of $1.5 billion.

Quoting from the ‘Decisions Memorandum’ on the facility drafted by the Mahama administration this year, Mr. BoakyeAgyarko said, the Mahama administration intends to “release up to US$450 million from the revenue accruing from the sale of Lean Gas over 2016 to 2018 for purposes of resolving shortfalls in GoG payment obligations under the MFA for 2016 to 2021”.

“This means that the gas that we are hoping will power our industries, offices, hospitals and homes, will rather be used to service a commercial loan of highly questionable prudence,” he stated.

The NPP’s Policy Advisor also revealed how the NDC is looking up to the Chinese to find an additional US$1.9 billion for the Ghana Gas Processing Plant to build the export infrastructure to make it possible to export all the NLGs to the Chinese.

It will be recalled that the NPP went on another wild goose chase when it published a false story titled “TALE OF 2 COUNTRIES: GHANA TO BUILD 180-MILE GAS PIPELINE AT $500M -AMERICA BUILDS 570-MILE PIPELINE AT $1.2BN.”

The report, originally filed by The New Statesman newspaper, was republished on a number of websites. The said news report ( alleged the following:

  • That Ghana Gas has signed an inflated contract for the construction of the 180-mile (290km) gas pipeline from Aboadze to Tema by paying over ten times what it cost in America.
  • That Ghana Gas is paying $2.8 million for every mile of pipeline constructed whereas the US is building a similar gas pipeline at a cost of $211,000 a mile.

The news report further quoted the flagbearer of the main opposition NPP and his Policy Advisor as having relied on the report to assert that the project is typical of the billions of dollars misspent on projects within the past five years that “if applied with integrity and intelligently would have gone a long way to solve our basic infrastructural

According to Ghana Gas Statement issued by Commutation Manager, Alfred Ogbamey, ,The New Statesman deliberately held back critical information from its discerning readers in order to create its illusion of corruption against the project. For example, the report withheld critical details such as the sizes/diameters of the US and Ghana pipelines it compared and the number of ancillary facilities such as compressors, block valve stations, inner coating availability, etc. of the two pipelines.

These facts, available and easily verifiable, are essential for comparative analysis of the two projects, but were withheld because it would expose the flawed foundation and analysis of the report to discerning readers. The US project cited in the report is the 570-mile mid-western pipeline constructed by Oneok Partners between 2011 and 2013 at $1.2 billion (

According to Ghana Gas, a critical assessment of the report exposes a badly-crafted attempt at misinformation. For example, the report alleged that Ghana Gas was undertaking the 180-mile Aboadze-Tema project at $2.8 million per mile, while the US constructed the 570-mile Oneok gas pipeline at $211,000 per installed pipeline. The report then claimed that the installed cost of a mile of the US pipeline at an alleged $211,000 was 10 times less the cost of the Ghanaian pipeline.

Despite the fact that the US project was between 2011– 2013 whereas the Aboadze-Tema pipeline begins in 2017, a simple analysis of the data contained in The New Statesman itself divulge the flawed arithmetic base underpinning the report. For example, $1.2 billion divided by 570 gives the cost of the US project at $2.1 million per mile of installed pipeline. This figure is a far cry from the $211,000 arithmetic average published by The New Statesman.

The value of $2.1 million cannot be 10 times less than $2.8 million in any arithmetical analysis.

This papers is at a loss why Nana Akuffo-Addo and his hench men will continue to engage in lies about the oil and gas industry to serve their parochial interests

. Even though oil and gas was found in commercial quantities in 2007, the NPP government of which Nana Akuffo Addo was a Cabinet Minister ignored the value and use of gas in the economy. It was only when the Mills/Mahama administration came to power in 2009 that a fully integrated and profitable gas business to serve the Ghanaian and export market was established.



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